M&M plans to increase capacity in Haridwar unit

New Delhi/Chandigarh: Automobile major Mahindra & Mahindra Ltd (M&M) has plans to ramp up its three-wheeler manufacturing capacity from 30,000 units to 100,000 units per annum at its location at Haridwar in Uttarakhand.

The proposed expansion is likely to be completed within a few months. Further, it has plans to roll out CNG-based three-wheelers for the Delhi market.

The company today unveiled the Alfa Passenger, a diesel three-wheeler for the Punjab market.

M&M Vice-President (Marketing, Auto Sector) Vivek Nayar said: 'The new Alfa Passenger three-wheeler is the first vehicle in its segment that has been truly designed developed by customers. The Alfa is based on extensive customer feedback and incorporates a host of special features that will ensure a smooth and comfortable ride for passengers as well as the driver. The latter will benefit the most as he often has to drive his vehicle for approximately 200 km a day, which can be a very tiring experience.”

At present the company has its manufacturing facility in Haridwar spread over 55 acres.

Commenting upon the potential, he added that with annual sales of approximately 220,000 vehicles, the three-wheeler, three-seater passenger category was a big potential market and was expected to grow on account of infrastructure development and increasing transportation needs.

The three-wheeler three-seater (passenger) industry grew 2 per cent in 2007-08 over the previous financial year.

However, while the petrol segment has declined, the diesel segment has grown (in which the Alfa Passenger has been launched) by 18 per cent on a year-on year basis.

The other major segment contributing to overall growth is the gas segment, which grew by 42 per cent on a year-on year basis.

Diesel sales contribute to around 62 per cent of the total sales of this category, while petrol contributes to 22 per cent and gas (LPG and CNG) 16 per cent.